Subject: File No. S7-25-06
From: Jack P McCormick

January 28, 2007

Although some adjustment of the net worth numbers may be appropriate for inflationary reasons, to close out millions of soon-to-be retirees from the benefits of hedge funds would be wrong.
The risk/reward ratios should be fully explained and some form of oversight at the higher levels could provide a necessary and valuable investment vehicle to a generation of persons not being adequately served by the existing menu of choices available today.
If "net worth" is to be used as the measure of investor sophistication,possibly a slowly increasing net worth requirement would be more in order starting at 1.5M and then adjusting upward as more history is developed over a representative period of time.